2014 California: Tax Exempt Interest
California does not tax interest from bonds or obligations of the U.S. and its territories.
Certain taxpayers, who reported interest from bonds from U.S. territories, may have filed an incorrect state tax return.
TurboTax has fixed this issue.
How to tell if you may be impacted
You may be affected if ALL of the following apply to you:
- You filed your California 540 or 540NR state tax return prior April 30, 2015 AND
- On your federal Schedule B (Interest and Dividends) you had interest income from a U.S. territory AND
- That amount is being added back on California’s Schedule CA, line 8, Column C (additions) or 540NR California Schedule CA, line 8, Column C (additions)
If you are affected, you may have overpaid your state tax. You may need to amend your California return.
To amend your return:
- Follow these amend instructions for the TurboTax Online product.
- Follow these amend instructions for the TurboTax CD Download product.
- After you make the changes to your tax return, you will need to mail a copy of your amended state return.
- Your printed return will include instructions on how and where to mail it.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the 2014 California: Tax Exempt Interest.